UBS to price trigger phoenix autocallables linked to Cummins

By Angela McDaniels

Tacoma, Wash., Jan. 9 - UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due Jan. 18, 2018 linked to the common stock of Cummins Inc., according to an FWP filing with the Securities and Exchange Commission.

If Cummins stock closes at or above the trigger price - 63% to 68% of the initial share price - on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 9% per year. Otherwise, no coupon will be paid that month. The exact trigger price and contingent coupon rate will be set at pricing.

Beginning one year after issuance, the notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on a monthly observation date.

If the notes are not called and Cummins shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

The notes are expected to price Jan. 11 and settle Jan. 16.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

The Cusip number is 90271B215.

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